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Senate Banking Committee Chair Tim Scott tackles Hagerty's GENIUS stablecoin legislation despite ... [+] Senator Elizabeth Warren's pushback.
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The Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) took a major step toward becoming law after passing the Senate Banking Committee in a bipartisan 18-6 vote. Sponsored by Senator Bill Hagerty (R-Tenn.), the bill establishes a comprehensive regulatory framework for payment stablecoins, marking a significant shift in U.S. cryptocurrency policy. The bill’s advancement reflects growing momentum for stablecoin regulation but has also intensified divisions within the financial industry and political establishment.
Bipartisan Push for Clarity in Stablecoin Regulation
Introduced on February 4, 2025, the GENIUS Act aims to provide long-overdue regulatory clarity for stablecoin issuers and investors. Stablecoins, cryptocurrency tokens pegged to the value of a fiat currency like the U.S. dollar, are already widely used in both the crypto economy and traditional financial markets. Despite their increasing adoption, stablecoins have operated in a murky regulatory environment, leading to uncertainty for both businesses and consumers.
Senator Hagerty emphasized the importance of regulatory clarity in his opening remarks at the Senate Banking Committee markup:
As the world modernizes its payment systems, the U.S. cannot be left behind,” Hagerty said. “Stablecoins can play a pivotal role in spurring that modernization. Whether it’s improving transaction efficiency, freeing up working capital, or driving U.S. Treasury demand, the benefits of a clear regulatory framework for stablecoins are immense.”
The GENIUS Act establishes licensing and regulatory requirements for stablecoin issuers at both the federal and state levels. It permits state oversight of stablecoin issuers with a market capitalization under $10 billion, while larger issuers will be regulated by the Federal Reserve and the Office of the Comptroller of the Currency (OCC).
Key Provisions of the GENIUS Act:
1. Licensing and Oversight:
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